PIPA In the News

14 Mar

Buying an investment property overseas

Jason Dunne is a concierge who dabbles in property.

Over the past two-and-a-half years, one of his investment properties has nearly doubled in value. You might think there's nothing noteworthy given Australia's turbo-charged property market. But Dunne's property is half a world away from Australia's booming capital cities.

"In mid-2014 I made the mistake of believing Sydney property prices were near their peak and sold a two-bedroom flat I owned in Lakemba [a western suburb of Sydney]," he says.

"Back then the Aussie dollar was around parity with the greenback. Plus, US property prices were still recovering from the crash of 2008. I used some of the money I made from the Lakemba sale to buy a four-bedroom house in Atlanta, which was a bank foreclosure."

08 Mar

Victoria axes stamp duty for first home buyers

Will stamp duty cuts in Victoria hike up prices?

The Andrews Government in Victoria has introduced a range of measures to help with the growing challenges around property price growth being driven by record low interest rates, strong population growth and supply not being able to keep up with demand.

07 Mar

When does it make sense to buy an apartment?

There's been plenty of talk recently about the dangers of buying an apartment – particularly those in large high-rise developments in the Melbourne, Sydney and Brisbane CBDs.

Recently, a majority of 26 housing experts and economists surveyed by comparison website Finder stated there was an oversupply of apartments in Melbourne and Brisbane, with experts predicting it would lead to a fall in property prices.

But are there some situations or locations – perhaps outside the CBD – where it still makes financial sense to buy an apartment?

03 Mar

Almost all tenancy complaints in Victoria and NSW come from landlords, not renters

In the last financial year, more than eight in every 10 official tenancy complaints in Victoria and NSW were not from tenants, but from landlords, an analysis of Australia's tribunal data shows.

In NSW, 83 per cent of almost 70,000 tenancy cases lodged to the NSW Civil & Administrative Tribunal in the 12 months to June 2016 were lodged by landlords, an analysis of tribunal data by comparison website Finder found.

And in the Victorian Civil and Administrative Tribunal, 93 per cent of cases were against tenants.

The main topic of dispute was bonds – making up about half of all complaints, Finder spokeswoman Bessie Hassan said.

02 Mar

Same game. New rules.

Investment lending continues to be a hot topic. The Adviser explores how the industry is navigating the changing landscape amid fears of further regulatory intervention.

A resurgence in investor lending towards the end of 2016 prompted a fresh round of fears that more regulatory measures could be on the way. According to the latest figures from the Australian Bureau of Statistics, investor lending is now up 21 per cent year-on-year after a 4.9 per cent surge in November – the fastest growth rate since the first half of 2015 when APRA implemented its macro prudential regulations.

A closer look at the RBA's Financial Stability Reviews and subsequent announcements from APRA provide a decent reading of how lending curbs reach the market. Take the RBA's September 2014 Review. The key phrase came when the central bank warned that "the composition f housing and mortgage markets is becoming unbalanced".

27 Feb

Property professionals "very optimistic" about business conditions this year

Property professionals throughout the country remain bullish on the year ahead, despite market uncertainties, states a new member survey from the Property Investment Professionals of Australia (PIPA).

More than half (54%) of surveyed property professionals are "very optimistic" about business conditions this year, while another 43% are optimistic"—despite challenges such as the tightening lending of policies, taxation changes, and potential interest rate increases.

PIPA's survey gathered insights from a range of professionals who form the peak association for property investment, including Qualified Property Investment Advisers (QPIAs), buyers agents, and mortgage brokers.

26 Feb

Property lease-back deals under ASIC scanner

Leaseback property deals, often targeted towards self-managed superannuation funds (SMSFs), are under the securities regulator's review.

The deals typically involve buying a residential investment property — house or apartment — with guaranteed tenancies that promise returns of around six percent, well above bank deposit rates or inflation numbers, according to a report in the Australian Financial Review.

The new owners lease back the properties to the developer who then acts as a landlord or engages a third party to rent and manage the property. Usually, these contracts are around three to five years and promise generous returns for the length of the contract.

Demand for the deals is growing among retirees looking for a regular, above-inflation income from the rent as well as the prospect of capital growth, the AFR reported.

23 Feb

Investor lending squeeze 'biggest concern' for property professionals

Property professionals' main concern for 2017 is the tightening of investor lending, followed by rising interest rates, a recent survey of the industry has revealed.

According to the latest member survey by Property Investment Professionals of Australia (PIPA), which gathered responses from association members from across the country between 23 January and 10 February this year, property professionals' main concern is the tightening of investor lending.

"APRA's approach to managing investor lending has raised both concerns and question marks for the industry," explained PIPA chair Ben Kingsley, adding that alternative measures could greatly assist in better managing Australia's property investment market.

23 Feb

Property pros buoyant about year ahead, despite uncertainties

Despite market uncertainties, most property professionals are upbeat about the year ahead, a new survey has found.

According to the Property Investment Professionals of Australia (PIPA) member survey, 97 per cent of property professionals are either 'very optimistic" or 'optimistic" about business conditions for 2017.

The survey gathered insights from various professionals including qualified property investment advisers, buyers' agents and mortgage brokers.

PIPA chair Ben Kingsley said the findings are encouraging.

"These results are testament to the increasing professionalism of the property investment industry and the diversified businesses our members are building, ensuring they can navigate various market cycles," Mr Kingsley said.

22 Feb

RBA governor lays blame for higher property prices on state, councils

Reserve Bank Governor Philip Lowe has laid the blame for higher property prices on matters directly under the control of the state government and local councils.

Mr Lowe levelled the blame during a speech at the Australia-Canada Economics Leadership Forum in Sydney today.

He said both countries were find that "at a time of strong demand from both residents and non residents, there are challenges on the supply side".

"I understand that zoning is an issue in Canada, just as in Australia," he said. "In some parts of Australia, there has also been under-investment in transport infrastructure, which has limited the supply of well-located land at a time when demand for such land has been growing quickly. The result is higher prices."

Mr Lowe said the increase in overall housing prices had gone "hand-in-hand" with a further pick-up in household debt.


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